Finding 1160982 (2024-004)

Material Weakness Repeat Finding
Requirement
AB
Questioned Costs
$1
Year
2024
Accepted
2025-10-20

AI Summary

  • Core Issue: The auditee failed to submit the Single Audit report within the required nine-month period, resulting in a delay of over four months.
  • Impacted Requirements: Noncompliance with 2 CFR 200.512(a) due to late engagement of external auditors.
  • Recommended Follow-Up: Management should establish a proactive audit planning schedule to ensure timely auditor engagement and submission of the report.

Finding Text

Criteria: Under 2 CFR 200.512(a), auditees that expend $750,000 or more in federal awards must submit their Single Audit report within nine months of the fiscal year end. Condition: The auditee’s fiscal year ended August 31, 2024. However, as of the date of this report (October 2025), the Single Audit report has not yet been issued—exceeding the nine-month submission requirement by over four months. Cause: The delay occurred because the external auditors were engaged only in January 2025. The late engagement significantly reduced the time available for audit fieldwork, report preparation, and final review, resulting in the delayed issuance of the Single Audit report. Effect: Late submission constitutes noncompliance with federal regulations and may delay future federal funding or result in additional oversight. Repeat Finding from Prior Year: This is not a repeat finding. Recommendation: Management should ensure timely engagement of external auditors and provide complete financial information promptly after year-end to allow the Single Audit report to be completed and submitted within the required nine-month timeframe. Questioned Costs: N/A Corrective Action Plan Explanation of Disagreement with Audit Findings: There is no disagreement with the audit finding. Actions Planned in Response to Finding: Management acknowledges that the late engagement of the external auditors contributed to the delayed completion and submission of the Single Audit. To prevent recurrence, management will establish a proactive annual audit planning schedule that ensures auditor engagement well in advance of the reporting deadline Official Responsible for Ensuring CAP: Paul Walker, Chief Executive Officer Planned Completion Date for CAP: Immediately Plan to Monitor Completion of CAP: Management will maintain an annual audit calendar with milestone dates for financial statement preparation, auditor fieldwork, and report submission. The CEO will review progress monthly to ensure timely completion.

Corrective Action Plan

Corrective Action Plan Explanation of Disagreement with Audit Findings: There is no disagreement with the audit finding. Actions Planned in Response to Finding: Management acknowledges that the late engagement of the external auditors contributed to the delayed completion and submission of the Single Audit. To prevent recurrence, management will establish a proactive annual audit planning schedule that ensures auditor engagement well in advance of the reporting deadline Official Responsible for Ensuring CAP: Paul Walker, Chief Executive Officer Planned Completion Date for CAP: Immediately Plan to Monitor Completion of CAP: Management will maintain an annual audit calendar with milestone dates for financial statement preparation, auditor fieldwork, and report submission. The CEO will review progress monthly to ensure timely completion.

Categories

Questioned Costs Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1160969 2024-003
    Material Weakness Repeat
  • 1160970 2024-004
    Material Weakness Repeat
  • 1160971 2024-003
    Material Weakness Repeat
  • 1160972 2024-004
    Material Weakness Repeat
  • 1160973 2024-003
    Material Weakness Repeat
  • 1160974 2024-004
    Material Weakness Repeat
  • 1160975 2024-003
    Material Weakness Repeat
  • 1160976 2024-004
    Material Weakness Repeat
  • 1160977 2024-003
    Material Weakness Repeat
  • 1160978 2024-004
    Material Weakness Repeat
  • 1160979 2024-003
    Material Weakness Repeat
  • 1160980 2024-004
    Material Weakness Repeat
  • 1160981 2024-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.959 Block Grants for Prevention and Treatment of Substance Abuse $18,294